DoL Releases Proposed Rules Relating to Pension
Funding Equity Act

>The proposed rules would require administrators of
multiemployer pension plans to annually report on the
funding status of the plans, according to a DoL press
release.

>A notice would have to be sent annually to
participants, beneficiaries, labor organizations,
contributing employers and the Pension Benefit Guaranty
Corporation (PBGC) and must be written in easy to
understand language and include financial information about
the plan, according to the announcement. If a plan is less
than 100% funded, the notice must also include he current
funded liability percentage. On top of this, the notice
must include a comparison of the plan’s assets to benefits
payments, a description of the law governing insolvent
plans and information about the PBGCs guarantees, according
to the news release.

“This Administration is taking concrete steps to improve
the financial integrity of the pension insurance system,
including more disclosure of information on the funding of
defined benefit plans,” said Assistant Secretary of Labor,
Ann Combs, in the release.
“We believe these rules will result in greater transparency
for workers, employers and the government on how well these
plans are funded.”

>Public comments on the proposed regulations should
be submitted to the U.S. Department of Labor, Employee
Benefits Security Administration (EBSA), Room N5669, 200
Constitution Ave., N.W., Washington, D.C.
20210, Attention: PFEA ’04 Project or by email to
e-ORI@dol.gov
.
The proposed regulation is to be published in Friday’s
Federal Register.